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Dole Food (DOLE) confirms receiving a buyout offer from a group led by its CEO at $12 per share....

Dole Food (DOLE) confirms receiving a buyout offer from a group led by its CEO at $12 per share. Traders are hopping mad over the development because the company recently cancelled a share buyback which may have had the ultimate effect of lowering the acquisition price in the proposed transaction. DOLE +16.2% premarket to $11.85.
Comments (1)
  • huhkevin
    , contributor
    Comment (1) | Send Message
     
    Shareholders should be hopping mad at the management and the board of this company. On the earnings call at the near the end of the Q&A,one analyst asked about the buyback that was mentioned on the press release. Management initially states they did not know what the person was talking about and then says it was a mistake. Then a few days later launches a $200 million buyback on May 9th only to cancel it on May 28th to buy three ships in 2015 and 2016. The stock subsequently tanks about 15% over the next several days. Then starting late last week starts creaping back up as to whoever was in the know started buying.

     

    The $12 offer is too low, needs to be $13.50 - 14 to be reasonable. How can you have an independent board when Murdock controls 40% of company. Did they cancel the share repurchase to knock the stock down to make the $12 offer seem decent? The stock's been as high as $15 in the last 12 months.
    11 Jun 2013, 08:29 AM Reply Like
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